Zacks Research Downgrades Light & Wonder (NASDAQ:LNW) to Hold

Key Points

• Zacks Research has downgraded Light & Wonder from a "strong-buy" rating to a "hold" rating, impacting its market perception.
• Various other analysts have similarly issued ratings adjustments, with a consensus rating of "Moderate Buy" and an average price target of $108.10.
• In recent insider activity, two directors increased their shareholdings significantly, indicating confidence in the company's future performance.

Light & Wonder (NASDAQ:LNW - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

Other equities research analysts also recently issued reports about the company. Jefferies Financial Group set a $116.00 price target on Light & Wonder in a research report on Wednesday, June 25th. Wall Street Zen cut shares of Light & Wonder from a "buy" rating to a "hold" rating in a research note on Sunday, July 13th. JPMorgan Chase & Co. cut Light & Wonder from an "overweight" rating to a "neutral" rating and cut their price objective for the company from $108.00 to $95.00 in a report on Thursday, August 7th. Benchmark reduced their target price on Light & Wonder from $100.00 to $90.00 and set a "buy" rating on the stock in a report on Friday, August 8th. Finally, Stifel Nicolaus raised their price target on shares of Light & Wonder from $84.00 to $95.00 and gave the company a "hold" rating in a report on Thursday, May 8th. Two equities research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Light & Wonder presently has a consensus rating of "Moderate Buy" and an average price target of $108.10.

Light & Wonder Stock Performance

Light & Wonder stock opened at $90.02 on Tuesday. The firm's 50 day simple moving average is $92.79 and its 200-day simple moving average is $91.99. The company has a market cap of $7.56 billion, a P/E ratio of 22.73, a price-to-earnings-growth ratio of 0.55 and a beta of 1.21. Light & Wonder has a fifty-two week low of $69.56 and a fifty-two week high of $115.00. The company has a debt-to-equity ratio of 6.86, a current ratio of 1.77 and a quick ratio of 1.51.

Light & Wonder (NASDAQ:LNW - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $1.58 EPS for the quarter, beating analysts' consensus estimates of $1.44 by $0.14. Light & Wonder had a net margin of 10.89% and a return on equity of 71.17%. The firm had revenue of $809.00 million for the quarter, compared to the consensus estimate of $851.29 million. During the same period in the previous year, the firm posted $0.90 earnings per share. The firm's revenue was down 1.1% on a year-over-year basis. As a group, equities research analysts predict that Light & Wonder will post 4.3 EPS for the current year.

Insider Activity at Light & Wonder

In related news, Director Antonia Korsanos purchased 8,065 shares of the firm's stock in a transaction that occurred on Sunday, August 10th. The shares were bought at an average price of $80.05 per share, for a total transaction of $645,603.25. Following the completion of the transaction, the director owned 22,815 shares of the company's stock, valued at approximately $1,826,340.75. This trade represents a 54.68% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, Director Timothy Throsby acquired 20,000 shares of the company's stock in a transaction that occurred on Thursday, August 14th. The shares were acquired at an average price of $89.37 per share, with a total value of $1,787,400.00. Following the completion of the transaction, the director owned 42,082 shares in the company, valued at $3,760,868.34. The trade was a 90.57% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired a total of 37,756 shares of company stock worth $3,209,088 in the last quarter. Corporate insiders own 2.20% of the company's stock.

Institutional Trading of Light & Wonder

A number of institutional investors and hedge funds have recently added to or reduced their stakes in LNW. IFP Advisors Inc boosted its holdings in shares of Light & Wonder by 198.9% during the 2nd quarter. IFP Advisors Inc now owns 269 shares of the company's stock worth $26,000 after buying an additional 179 shares in the last quarter. Versant Capital Management Inc raised its holdings in shares of Light & Wonder by 4,783.3% in the first quarter. Versant Capital Management Inc now owns 293 shares of the company's stock valued at $25,000 after purchasing an additional 287 shares during the last quarter. Employees Retirement System of Texas bought a new position in shares of Light & Wonder during the 2nd quarter worth approximately $29,000. Headlands Technologies LLC bought a new position in Light & Wonder in the 2nd quarter valued at $38,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Light & Wonder by 118.5% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 437 shares of the company's stock worth $42,000 after buying an additional 237 shares during the last quarter. Institutional investors and hedge funds own 88.08% of the company's stock.

Light & Wonder Company Profile

Light & Wonder, Inc is a cross-platform global games company, which engages in the development of content and digital markets. It operates through the following segments: Gaming, SciPlay, and iGaming. The Gaming segment includes the design, manufacture, marketing, and distribution of portfolio of gaming products and services.

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